Medical gas suppliers typically have a dedicated distribution channel designed to handle the portable medical gas cylinders routinely shipped to and from its customers. Given the economics of the gas cylinder product sales and infrastructure required to support the current gas cylinder distribution model, the radius of distribution is often limited to customers within about 60 miles from each distribution center. To expand the existing proprietary distribution networks and the number of distribution centers to effectively cover the entire United States and Canada to meet the medical oxygen needs of the public sector would likely be cost prohibitive.
What is needed therefore is an alternate and cost-effective distribution channel for cylinder-based, medical gas products.